Revised Cyprus Citizenship by Investment Program

The Cyprus Government has approved on 13th September 2016 a revised scheme for granting Cypriot citizenship to non-European entrepreneurs and investors.

INVESTMENT REQUIREMENTS

According to the Regulations issued by virtue of the Civil Registry Laws, foreign investors who wish to obtain Cypriot citizenship by investment need to meet the following requirements:

• Must hold a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500,000 plus applicable VAT;

• Must choose one of the prescribed investment options for €2 million and maintain it for the required duration (3 years);

• In the case that one chooses to invest in residential properties only and one of the residential properties is priced at least €500,000, then the total investment amount can be only €2 million.

INVESTMENT OPTIONS

1. Real estate, land development and infrastructure projects

Applicants must make an investment of at least €2 million in the purchase or construction of buildings, land development projects (residential or commercial) or infrastructure projects.

2. Purchase, creation, or participation in Cypriot businesses or companies.

Applicants must make an investment of at least €2 million in the purchase, creation or participation in businesses or companies that are based and operating in the Republic of Cyprus.

These businesses or companies should evidently have a tangible presence in Cyprus and employ at least five Cypriot citizens or European citizens.

3. Financial assets of Cypriot companies or organizations

Applicants must make an investment of at least €2 million in regulated funds which have be lisenced by the Cyprus Securities and Exchange Commission in the Republic of Cyprus. Investors need to maintain the purchased assets for a period of three years.

4. Combination of the above

Applicants must make an investment of at least €2 million in a combination of the aforementioned options 1-3. In this case, they can invest also in government bonds at a maximum €500,000, and they still have to maintain the investments for a period of three years.

APPLICATION REQUIREMENTS

In addition to making a financial investment, applicants must also meet the following requirements:

• Must have a valid passport;

• Provide proof that the applicant has no criminal record;

• The applicant’s name must not be included in the list of persons whose property is ordered to be frozen within the boundaries of the EU;

• Payment of application fees;

• Must be a resident before being granted citizenship (hence the simultaneous application for both residency and citizenship for non-residents). Residency will be granted before granting citizenship.

Please note that there is a grace period until October 31, 2016, where the old and the new programs will run. For more information, please contact us at citizenship@vorkaslaw.com.cy.